Australia Rental Market Surprises: Biggest Reveals

Discover the biggest surprises in Australia's rental market. From bafflingly high rents to surprisingly affordable options, find out more here.

In certain regions of Australia, the cost of renting a property can vary significantly, with some areas experiencing exorbitant prices while others remain surprisingly affordable. Interestingly, some cities are witnessing the highest rental growth in unexpected neighborhoods.

The Gold Coast, known as the 'glitter strip' due to its abundance of apartment towers, has seen a staggering 62.8% increase in median rental prices for units since March 2020, reaching $700 per week according to PropTrack data. This makes Gold Coast rental properties among the most expensive in the country, second only to certain parts of Sydney where tenants are paying $950 per week for accommodation.

Cameron Kusher, the director of economic research at PropTrack, highlighted the unique market dynamics of the Gold Coast, where demand for long-term rentals outweighs the available supply. The city's appeal as a major urban center with direct flight connections to other major cities like Sydney and Melbourne has attracted many new residents, further exacerbating the shortage of long-term rental properties.

The rental market in the Gold Coast is becoming increasingly competitive, with high demand leading to multiple applications for properties priced under $1,000 per week. Single individuals are particularly affected, with some opting to share accommodation to split the rent. The shortage of properties for sale has also contributed to the scarcity of available rentals, forcing many prospective tenants to consider renting as a temporary solution.

Surprisingly, Melbourne stands out for its relatively affordable rental prices compared to other major cities in Australia. With a median weekly rent of $560 for dwellings in the March quarter, Melbourne offers a more cost-effective option for renters compared to Sydney, Perth, and other metropolitan areas. Factors such as a greater housing supply, stable population growth, and fewer interstate migrations have contributed to Melbourne's rental affordability.

Contrary to expectations, rental prices in outer suburban areas of major cities like Sydney and Melbourne have experienced the highest growth rates. This trend reflects the increasing difficulty for individuals to afford accommodation in traditional rental-centric markets, pushing them further away from city centers.

While rental prices continue to rise across Australia, the rate of growth is slowing down due to affordability constraints. Brisbane and Adelaide have experienced notable slowdowns in rental price increases, indicating a potential stabilization in the rental market. Even in popular rental markets like the Gold Coast, the rate of growth has eased in recent months to ensure continued affordability for tenants.

The rental market in Australia is characterized by regional disparities in pricing, with some areas experiencing rapid growth while others remain relatively stable. As demand for rental properties continues to rise, it is essential for policymakers and stakeholders to address the challenges of affordability and supply to ensure a sustainable housing market for all residents.